Image source: Bumble
(Reuters)-Bumble Inc, a dating app operator backed by buyout company Blackstone Group Inc, raised $ 2.2 billion on Wednesday, surpassing its initial public offering (IPO) shares by $ 43 per share.
The IPO has brought over $ 7 billion in market capitalization to a company based in Austin, Texas. Bumble sold 50 million shares after raising its share offering several times. Previously, it aimed to sell 45 million shares in the target price range of $ 37 to $ 39.
Some dating apps like Bumble are also thriving under the social distance associated with COVID-19, and people at home are looking for romance using instant messaging.
Bumble, which also owns Badoo’s dating app, expects to generate up to $ 541.5 million in revenue between January and December 2020, up 11% year-over-year due to an increase in paying customers. It states that.
As of the end of September, the company had 42 million monthly active users, of which 2.5 million were paid users, up 22% from the previous year. I had a debt of $ 900 million.
Bumble, a dating app that bears its name, was founded by Whitney Wolfe Herd in 2014 after a violent departure from her co-founded rival app, Tinder.
Wolfhard, 31, sued Tinder, claiming that her co-founder had exposed her to sexual harassment. Match Group Inc, the parent of The Tinder, who denied the allegations, paid about $ 1 million to resolve the dispute.
However, a court battle broke out in 2018 after Bumble rejected Match’s $ 450 million takeover offer. Match filed a proceeding against Bumble alleging infringement of intellectual property rights. However, two weeks later, Bumble counterclaimed the match between fraud and theft of corporate secrets. Both proceedings were later withdrawn in the same year.
In 2019, Blackstone paid about $ 3 billion from founder Andrey Andreev to acquire a majority stake in Magic Lab, which then owned the Bumble and Badoo apps. Wolfhard was appointed Chief Executive Officer of Bumble after the deal.
Bumble shares will begin trading on the Nasdaq under the “BMBL” symbol. Goldman Sachs and Citigroup are lead underwriters for this offering.
Report by Chibuike Oguh in New York. Edited by Aurora Ellis.